Iqiyi Inc (IQ)
NASDAQ:IQ
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Iqiyi
(NASDAQ:IQ)
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Rating:45Neutral
Price Target:
$1.00
▼(-29.08% Downside)
Action:Reiterated
Date:05/19/26
The score is held down primarily by weak financial performance—especially the sharp deterioration in operating and free cash flow and the return to losses—plus a bearish technical downtrend. These negatives are only partially offset by a more constructive earnings-call outlook centered on AI initiatives, international growth, cost control, and balance-sheet actions.
Positive Factors
AI-driven production & Nadou Pro scale
Large-scale AI tooling and Nadou Pro adoption create a durable competitive advantage by lowering per-title production cost and shortening cycles. That scale enables high-margin, repeatable content creation, supports IP volume growth and faster monetization, and reduces reliance on costly traditional production models.
Negative Factors
Weak operating cash generation
Sharp cash-flow deterioration is a durable risk for a content-heavy streaming model that must fund originals and IP. Reduced operating cash limits reinvestment in premium content, heightens refinancing or dilution risk, and constrains ability to scale initiatives like international expansion without external capital.
Read all positive and negative factors
Positive Factors
Negative Factors
AI-driven production & Nadou Pro scale
Large-scale AI tooling and Nadou Pro adoption create a durable competitive advantage by lowering per-title production cost and shortening cycles. That scale enables high-margin, repeatable content creation, supports IP volume growth and faster monetization, and reduces reliance on costly traditional production models.
Read all positive factors
Iqiyi (IQ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.05B
Dividend YieldN/A
Average Volume (3M)8.80M
Price to Earnings (P/E)―
Beta (1Y)1.28
Revenue Growth-6.04%
EPS Growth-339.14%
CountryUS
Employees4,673
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)-0.21
Shares Outstanding530,582,300
10 Day Avg. Volume5,881,034
30 Day Avg. Volume8,802,173
Financial Highlights & Ratios
PEG Ratio3.55
Price to Book (P/B)0.97
Price to Sales (P/S)3.41
P/FCF Ratio1.33K
Enterprise Value/Market Cap8.29
Enterprise Value/Revenue2.30
Enterprise Value/Gross Profit10.91
Enterprise Value/Ebitda207.37
Forecast
1Y Price Target
$1.56Price Target Upside10.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.02
Revenue Forecast (FY)$26.21B
Iqiyi Business Overview & Revenue Model
Company Description
iQIYI, Inc., together with its subsidiaries, provides online entertainment services under the iQIYI brand in the People's Republic of China. The company offers various products and services comprising internet video, online games, live broadcastin...
How the Company Makes Money
iQIYI primarily generates revenue through (1) membership/subscription services and (2) advertising. Membership revenue comes from paid subscribers who purchase recurring subscriptions (and related premium offerings) to access ad-free or enhanced v...
Iqiyi Earnings Call Summary
Earnings Call Date:May 18, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 26, 2026
Earnings Call Sentiment Positive
The call highlights a mix of near-term headwinds and strategic progress. Top-line revenue declined sequentially largely due to seasonality and fewer third-party distribution deals (total revenue -8%, ad -8%, distribution -54%), and the company remains modestly loss-making on a non-GAAP basis (~RMB 149M, ~2% margin) with limited operating cash (RMB 186M). Offsetting these weaknesses are clear operational and strategic positives: sequential membership growth and longer subscription duration, strong international membership expansion (overseas membership +40% YoY; Indonesia +80% YoY; Brazil/Mexico >100% YoY), broad adoption of Nadou Pro (10,000+ creators) and large-scale AI content initiatives (3,000+ AI micro dramas; 14,000+ micro animation titles), improved monetization for micro dramas (+60% revenue per inventory unit YoY), and disciplined cost reductions (content cost -2%, operating expenses -10%). Management also advanced IP commercialization (iQIYI LAND, merchandise records) and capital actions to strengthen the balance sheet. Overall, strategic momentum in AI, international expansion and content monetization outweigh the near-term revenue and cash challenges, suggesting a cautiously positive outlook.Positive Updates
Membership Revenue Sequential Recovery
Membership services revenue of RMB 4.2 billion, up 2% sequentially; driven by premium titles (Pursuit of Jade, The Punishment 2, How Dare You!?, The Devil Between Us) and improved upselling/longer average subscription duration for monthly subscribers; higher-tier F7 membership continued to scale.
Negative Updates
Total Revenue Decline
Total revenues were RMB 6.2 billion, down 8% sequentially, indicating near-term top-line pressure despite membership recovery.
Read all updates
Q1-2026 Updates
Positive
Negative
Membership Revenue Sequential Recovery
Membership services revenue of RMB 4.2 billion, up 2% sequentially; driven by premium titles (Pursuit of Jade, The Punishment 2, How Dare You!?, The Devil Between Us) and improved upselling/longer average subscription duration for monthly subscribers; higher-tier F7 membership continued to scale.
Read all positive updates
Company Guidance
Management guided toward product, geographic and AI-driven growth while calling out many concrete metrics: they plan to launch over 100 short‑form dramas in 2026 and build an Internet feature‑film slate, prioritize Q2 actions to maximize ad sales and reactivate dormant members (including smart‑TV partnerships and June 18 promotions), expand iQIYI LAND to Kaifeng and Beijing, and commercialize Nadou Pro (live since Apr 20 with >10,000 active creators and ~100 iQIYI original projects) and international rollout; Q1 operating metrics referenced included total revenue RMB 6.2bn (‑8% seq), membership RMB 4.2bn (+2% seq), online ads RMB 1.2bn (‑8% seq), content distribution RMB 358.7m (‑54% seq), other RMB 426.7m (‑22% seq), content cost RMB 3.7bn (‑2% seq), operating expenses RMB 1.2bn (‑10% seq), net cash from operations RMB 186m, non‑GAAP operating loss RMB 149m (~2% margin) and cash/resources RMB 4.0bn; content/AI scale metrics included >3,000 AI micro‑dramas launched in Q1 and a micro‑animation/AI library of >14,000 titles, and overseas membership momentum cited as >40% YoY (Indonesia +80% YoY; Brazil & Mexico +100% YoY) — financial actions include a proposed HK listing and a USD 100m buyback program (to date ~6.45m ADS repurchased for ~USD 8m) and debt reduction via repurchase of the 6.5% 2028 convertible notes.Iqiyi Financial Statement Overview
Summary
Income Statement
48
Neutral
Balance Sheet
55
Neutral
Cash Flow
28
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.80B | 29.23B | 31.87B | 29.00B | 30.55B |
| Gross Profit | 799.75M | 7.27B | 8.77B | 6.68B | 3.04B |
| EBITDA | 1.87B | 1.82B | 17.25B | 14.34B | 12.10B |
| Net Income | -28.70M | 764.06M | 1.93B | -136.21M | -6.19B |
Balance Sheet | |||||
| Total Assets | 46.71B | 45.76B | 44.59B | 46.05B | 42.47B |
| Cash, Cash Equivalents and Short-Term Investments | 4.70B | 4.47B | 5.38B | 7.92B | 4.35B |
| Total Debt | 15.55B | 14.19B | 15.29B | 22.53B | 17.57B |
| Total Liabilities | 33.39B | 32.39B | 32.41B | 39.70B | 36.80B |
| Stockholders Equity | 13.33B | 13.37B | 12.09B | 6.25B | 5.19B |
Cash Flow | |||||
| Free Cash Flow | 9.72M | 1.94B | 3.25B | -340.34M | -6.35B |
| Operating Cash Flow | 102.92M | 2.11B | 3.35B | -70.57M | -5.95B |
| Investing Cash Flow | -318.51M | -2.44B | -1.74B | 265.98M | 1.26B |
| Financing Cash Flow | 1.04B | -1.37B | -4.29B | 4.47B | -2.96B |
Iqiyi Technical Analysis
Negative
1.41
Price Trends
1.24
Negative
1.55
Negative
1.91
Negative
Market Momentum
-0.05
Positive
33.74
Neutral
16.95
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IQ, the sentiment is Negative. The current price of 1.41 is above the 20-day moving average (MA) of 1.16, above the 50-day MA of 1.24, and below the 200-day MA of 1.91, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 33.74 is Neutral, neither overbought nor oversold. The STOCH value of 16.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IQ.
Iqiyi Risk Analysis
Iqiyi disclosed 96 risk factors in its most recent earnings report. Iqiyi reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Iqiyi Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $373.08B | 19.21 | 49.24% | ― | 18.57% | 45.93% | |
75 Outperform | $178.86B | 18.16 | 10.29% | 1.10% | 4.02% | 27.66% | |
75 Outperform | $18.11B | 18.11 | 67.11% | 2.47% | 12.55% | -0.50% | |
73 Outperform | $18.53B | 40.72 | 7.64% | ― | 16.78% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
55 Neutral | $67.77B | -5.13 | -6.13% | ― | -2.78% | 84.26% | |
45 Neutral | $1.05B | -52.81 | -0.92% | ― | -6.04% | -339.14% |
* Communication Services Sector Average
IQ
Iqiyi
1.09
-0.58
-34.73%
DIS
Walt Disney
103.00
-8.13
-7.32%
NFLX
Netflix
88.60
-29.94
-25.26%
ROKU
Roku
125.55
56.54
81.93%
WMG
Warner Music Group
34.72
9.16
35.85%
WBD
Warner Bros
27.03
17.48
183.04%
Iqiyi Corporate Events
iQIYI Swings to First-Quarter Loss as Revenue Falls, Repurchases 2028 Notes
May 18, 2026
iQIYI reported unaudited results for the quarter ended March 31, 2026, showing a 13% year-on-year decline in revenue to RMB6.23 billion as membership, advertising, content distribution and other revenues all fell, with lighter content output and m...
iQIYI Unveils Hong Kong Listing Plan, $100 Million Buyback and AI Video Agent Nadou Pro
Mar 30, 2026
On March 30, 2026, iQIYI announced several corporate and business initiatives that underscore its ambitions in capital markets and technology. The company has confidentially submitted a listing application to the Hong Kong Stock Exchange for its C...
iQIYI Posts Weaker 2025 Profitability as Content Costs Rise, Bets on Overseas Growth
Feb 26, 2026
On February 26, 2026, iQIYI reported unaudited results for the fourth quarter and full year ended December 31, 2025, showing modest Q4 revenue growth but significantly weaker profitability compared with 2024. Fourth-quarter revenue rose 3% year on...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.